Question about professional reading

I've recently been presented with the prospect of doing readings online through a friend's website. I guess I'd like to know is if this is a good idea. I don't consider myself a "professional", but I have been doing extremely well with the readings I have done for friends, family and so on.

Do I need to be qualified for this, and how? Do I need a tax number? Do I need to register with the IRS, or anything? Does the IRS even recognise Tarot reading as a "real" job?

I think this is something I'd really like to do, so any information would be a great help.

Take any advice you get in this thread with a grain of salt. There are a lot of rumors flying around about what has to and doesn't have to be claimed. If you're making enough money that the IRS can trace it if they were so inclined (anything other than cash) then you're gonna have to claim it. There are loopholes and deductions that a tax preparer can fill you in on. I repeat, the advice in this thread (including that which I myself type) will be little more than hearsay. Your best bet is to start with the IRS website. It won't be easy to read, but probably worth it if you're serious. And then the IRS tries to keep us on our toes by changing the rules all the time. So that's fun... When in doubt ask a pro! Also, keep in mind that laws concerning Tarot reading itself will vary from city to city. I don't know how that effects internet reading... And as always, I recommend Professional Tarot by Christine Jette, but that still doesn't cover all of it.

As far as being qualified, if someone's offered you job you can usually assume that you are.

In particular if you're being paid through something other than cash, it's automatically traceable and "people" (the government, the bank, somebody who matters) will notice. Cashing checks, getting paypal deposits, any of that stuff. If you only make a couple bucks, then it won't matter. But hopefully you'll make loads!

Generally your Social security number is your tax number. You just need to make sure to hold back enough money to pay your state, city, and federal taxes, plus social security (twice as much as usual if you are an independent contractor like most readers) and Medicare.

Make sure you know if you are being paid as an employee, or as an independant contractor. This will have a huge impact on your tax rate (contractors are "self employed" so have to pay Social Security and other taxes that equals more money).

I would suggest a short session with a professional tax preparer- If you make money as a reader, things like new decks, books, memberships to tarot associations, trips to conferences, classes..... anything that you can make a case helps you with your work (even if your work doesn't pay the bills) might be deductable. All this will be moot if you don't have other deductions (if your "standard deduction" is more than you pay for these things in a year, itemizing your deductions won't help you).

Also, as has been noted, make sure you aren't in violation of any local laws- there are some places that will fine (or imprison?) you if you take any money for fortune telling. Know the law- it may be legal to read tarot, but illegal to make predictions with tarot, for example.

“Cross my palm with silver…” Of course with silver, or with cash. Cash is invisible, cash keeps you under the radar. Checks, PayPal, Credit or Debit Cards are traceable and therefore reportable forms of income, reflecting taxable events.

If you have a $50,000 a year lifestyle, and report no earnings, or earnings below that fifty G, you’d best have a darn good story.

Donations. Yeah. Bad idea. If donations correctly created a non-taxable event, you’d have donations at the gas pump. Sorry. Bad idea. Unless you are an approved charitable organization. Creating a ULC church may create more trouble than it’s worth. ULC accreditation is best used when avoiding ‘Fortune Telling’ laws.

The US IRS tax codes for business begin by defining what a business is. If the IRS determines you are a hobbyist making money on the side by reading tarot, they will disallow any deductions and force payment of full taxes. You need to be able to prove that you’re actually running a business to apply for business deductions.

If you’re an employee, your employer must follow rules, dot the I’s and cross the t’s (as in Taxes). If you’re an independent contractor (or getting paid under the table), then you’re operating a business, or a hobbyist trying to make money. So you have to have your paperwork in order.

Get an accountant. Do not use this or any other tax advice offered by any AT Member. Do not use your corner neighborhood corner of walk and don’t walk accountant. Get a good one. You’ll pay $200-$300 a year.

See…tax folks are human. The IRS is part of the Treasury Department. They operate outside of the judicial realm. They can do search and seizure sans warrants (regardless of what is/or they say).

I don't want you to be scared, though. I have a "regular job" and I also do a variety of other work--I say I'm a "consultant" for this other stuff on my tax forms. And the forms are not that hard to fill out. The advice about getting advice is good, and especially about finding out if there are local anti-fortune-telling laws you'd have to worry about, although I don't think you acutally have to worry about those if your work is all on-line, as you could go to the next county and hook up to the internet through a coffeeshop! Anyway, professional advice when you set up the business, yes, but for heaven's sake don't let the IRS and other gummit rules and regs keep you from doing this....it sounds like a great opportunity!

Okay, I can see that this will be more than a little complicated... and I totally forgot about how some states have that law against saying sooths! I can recall hearing about Z. Budapest being jailed in California back in the '70's for reading tarot.

Hmmm... the last thing I want to do is share a cell with Bubba, so I wll check up on all the stuff you all suggested for me. After all, who would feed my ferrets?

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